Introduction
This enhanced trading indicator combines the power of the Williams Alligator with a 200 Simple Moving Average (SMA) to provide clearer entry/exit signals. Developed by cryptowatri, this tool filters market noise while offering early trend detection through a rewritten, optimized script.
Key Features:
- Redesigned Alligator Logic: Updated default values for fewer but higher-confidence signals.
- Early Trend Signals: Identifies initial breakouts when price crosses both the Alligator's jaw and lips.
- SMA Confirmation: Adds a 200 SMA layer for additional trend validation.
- Emoji-Enhanced Alerts: Visual cues for quick signal recognition.
How the Indicator Works
Williams Alligator Core Mechanics
The Alligator indicator consists of three smoothed moving averages representing its "jaw" (13-period), "teeth" (8-period), and "lips" (5-period).
Key improvements in this version:
- Noise Reduction: Adjusted parameters minimize false signals.
- Early Signals: Detects first candle closing above/below jaw + lips during trend initiation.
200 SMA Integration
The 200-period SMA acts as:
- A trend filter: Long positions favored above the SMA, short positions below.
- A support/resistance level: Confluence with Alligator signals increases trade validity.
Trading Strategy Breakdown
Entry Conditions
- Buy Signal
✅ Price above 200 SMA
✅ Early Alligator signal (candle closes above jaw + lips)
📈 Green arrow + "🟢" emoji - Sell Signal
✅ Price below 200 SMA
✅ Early Alligator signal (candle closes below jaw + lips)
📉 Red arrow + "🔴" emoji
Exit Conditions
- Opposite early signal appears
- Price crosses 200 SMA in reverse direction
👉 Discover advanced trading strategies using this indicator
Benefits Over Standard Indicators
| Feature | Standard Alligator | Enhanced Version |
|---|---|---|
| Signal Clarity | High noise | Fewer, clearer signals |
| Trend Confirmation | None | 200 SMA validation |
| Early Detection | Delayed | First-breakout emphasis |
| Visual Feedback | Basic | Emoji-enhanced |
FAQ Section
Q: How often does this repaint?
A: The indicator uses confirmed closes, minimizing repainting. Early signals only update at candle completion.
Q: Best timeframes for this strategy?
A: Works across 15min–daily charts. Lower timeframes may require additional filters.
Q: Can I automate trades with this?
A: Yes, but backtest first. The 200 SMA adds robustness for algorithmic trading.
Q: Why combine Alligator with SMA?
A: The SMA filters false breakouts—Alligator signals aligned with SMA direction have higher success rates.
👉 Learn to backtest this strategy effectively
Future Development Roadmap
- Multi-Indicator Synthesis: Integrating RSI and MACD for confluence (cryptowatri's "ultimate goal").
- Customizable Alerts: User-defined sound/visual notifications.
- Divergence Detection: Spotting hidden trend reversals.
Final Notes
This open-source tool exemplifies TradingView's collaborative ethos. Always validate strategies in a risk-controlled environment before live trading.
"The best indicator simplifies complexity without losing nuance." — cryptowatri
For educational purposes only. Past performance ≠ future results.
### SEO Keywords:
1. Williams Alligator indicator
2. Buy/sell signals
3. 200 SMA strategy
4. TradingView scripts
5. Cryptocurrency trading
6. Early trend detection
7. Noise reduction trading